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Bond P is a premium bond with a coupon rate of 1 1 percent. Bond D has a coupon rate of 6 percent and is
Bond is a premium bond with a coupon rate of percent. Bond has a coupon rate of percent and is currently selling at a discount. Both bonds make annual payments, have a par value of $ a YTM of percent, and have six years to maturity.
a What is the current yield for Bond and Bond DDo not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
b If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond and Bond D A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
tablea Bond P current yield,,
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